Panasonic indicates huge losses, job cuts

Panasonic Corp. says huge losses and a complex restructuring will force it to cut about 17,000 jobs in the next two years.

According to Dow Jones, the Japanese firm has already eliminated 17,600 jobs the past year. Following the planned reduction, Panasonic's workforce will most likely stand at 3,50,000.

The company expects the restructuring charges to be at the Rs.6,145.25 crore (110 billion yen) level in fiscal 2012 and the Rs.2,793.30 crore (50 billion yen) level in fiscal 2013.

''Panasonic will review overlapping businesses within the group and consider consolidation or transfer them to outside companies. At the same time, Panasonic will reorganise its bases and reassign its personnel, as the reorganisation involves consolidation and streamlining at the group's head offices and all business domains,'' according to the company.

To restructure the company's lithium-ion battery business, the company will shift production to China. The company will invest Rs.3,072.63 crore (55 billion yen) through fiscal 2013 in China, including construction of a new factory in Suzhou.

Panasonic will increase purchase of LCD panels from outside vendors and transfer a production line of its third domestic PDP plant in Amagasaki City in Japan to China.